Investing.com - The U.S. dollar traded lower against most of its major rivals during Monday’s Asian session even as traders searched for safe-haven currencies amid political strife in Italy and disappointing data out of China.
In Asian trading Monday, EUR/USD dropped 0.17% to 1.3500 after news broke that Italian Prime Minister Enrico Letta said he will probably call for a confidence vote in parliament on Wednesday following the abrupt resignation of five ministers.
The now former ministers are members of former Prime Minister Silvio Belusconi’s center-right party and their resignations cast doubt on the strength of the government in the euro zone’s third-largest economy.
Tensions within the Italian government have risen as the Senate there is preparing to decide whether Berlusconi will keep his seat after being convicted of tax fraud in August.
USD/JPY slid 0.43% to 97.83 as traders turned to the yen as a safe-haven play. Earlier Monday, Japan’s Ministry of Economy, Trade and Industry said that industrial production there fell 0.7% last month after a 3.4% jump in the prior month. Analysts expected industrial production to slid 0.4% last month.
Separately, the Ministry of Economy Trade and Industry said that Japanese retail sales rose 1.1% last month after a 0.3% decline in the previous month. Analysts expected retail sales to increase 1% last month.
GBP/USD added 0.19% to 1.6172 while USD/CHF lost 0.15% to 0.9049 as traders turned to the franc as another safe-haven alternative. USD/CAD inched down 0.02% to 1.0305.
AUD/USD lost 0.10% to 0.9307 while NZD/USD inched up 0.01% to 0.8283 after The September reading of the China HSBC Purchasing Managers’ Index came in at 50.2, well below the flash reading of 51.2 and estimates calling for 51.2. Readings above 50 indicate expansion.
Last Friday, official data showed Chinese industrial firms saw their combined profits jump 24.2% year-over-year in August, following an 11.6% increase in July. Through the first eight months of 2013, Chinese industrial profits increased 12.8%.
China is the largest export market for both Australia and New Zealand. The U.S. Dollar Index nudged down 0.01% to 80.36.
In Asian trading Monday, EUR/USD dropped 0.17% to 1.3500 after news broke that Italian Prime Minister Enrico Letta said he will probably call for a confidence vote in parliament on Wednesday following the abrupt resignation of five ministers.
The now former ministers are members of former Prime Minister Silvio Belusconi’s center-right party and their resignations cast doubt on the strength of the government in the euro zone’s third-largest economy.
Tensions within the Italian government have risen as the Senate there is preparing to decide whether Berlusconi will keep his seat after being convicted of tax fraud in August.
USD/JPY slid 0.43% to 97.83 as traders turned to the yen as a safe-haven play. Earlier Monday, Japan’s Ministry of Economy, Trade and Industry said that industrial production there fell 0.7% last month after a 3.4% jump in the prior month. Analysts expected industrial production to slid 0.4% last month.
Separately, the Ministry of Economy Trade and Industry said that Japanese retail sales rose 1.1% last month after a 0.3% decline in the previous month. Analysts expected retail sales to increase 1% last month.
GBP/USD added 0.19% to 1.6172 while USD/CHF lost 0.15% to 0.9049 as traders turned to the franc as another safe-haven alternative. USD/CAD inched down 0.02% to 1.0305.
AUD/USD lost 0.10% to 0.9307 while NZD/USD inched up 0.01% to 0.8283 after The September reading of the China HSBC Purchasing Managers’ Index came in at 50.2, well below the flash reading of 51.2 and estimates calling for 51.2. Readings above 50 indicate expansion.
Last Friday, official data showed Chinese industrial firms saw their combined profits jump 24.2% year-over-year in August, following an 11.6% increase in July. Through the first eight months of 2013, Chinese industrial profits increased 12.8%.
China is the largest export market for both Australia and New Zealand. The U.S. Dollar Index nudged down 0.01% to 80.36.